new Delhi. The Central Government has come up with a proposal that the entire amount should be returned by the airlines within 15 days for tickets booked during the lockdown, and if an airline is in financial crisis and unable to do so If so, it should be provided the travel credit shell of the passengers’ choice by 31 March 2021. Domestic, international and foreign airlines have proposed to refund the full amount for tickets booked during lockdown.
In an affidavit to the Supreme Court, Civil Aviation Director OK Gupta said, “For domestic airlines, if the tickets are booked directly through the airline or an agent, during the first lockdown period 25 March-14 April 25 March-3 May” In all such cases, a full refund will be given by the airlines immediately if the first and second lockdown period was booked to travel.
Supreme Court was informed by Directorate General of Civil Aviation (DGCA) that tickets booked by passengers in domestic and international carriers for air travel during the first two phases of lockdown between March 25 to May 3, 2020, will be ‘fully refunded’. pic.twitter.com/27Pis2Yi1b
– ANI (@ANI) September 6, 2020
The affidavit states, “For all other matters airlines will make all efforts to return the collected amount to the passenger within 15 days. If airlines are not able to do so due to financial crisis, they will provide a credit shell to the passenger equal to the amount of the fare collected. This credit shell will be issued in the name of the passenger who has booked the ticket. The passenger will be able to use the credit shell by 31 March 2021 on any route of his choice. “
The Center stated that there would be incentive mechanism to compensate the passenger for delay in consumption of credit shell, eg from the date of cancellation of the ticket till June 30, 2020, 0.5 percent in the value of the credit shell (the value of the ticket previously taken). Will increase
The affidavit further states, “Subsequently, the value of the credit shell will be increased to 0.75 percent of the face value per month by March 2021. Credit shell can also be transferred. Passenger credit shells can be transferred to any person, and airlines will honor such transfers. Airlines will create a mechanism to facilitate such transfers. At the end of March 2021, the airline will return cash to the credit shell holder. “
The center said the solution is practical, as it balances the interests of passengers as well as airlines. He also urged the Supreme Court to pass a suitable order for its implementation.
Advocate Jose Abraham, representing the petitioner Pravasi Legal Cell, said, “The petitioner happily welcomes the initiative of the Central Government directing full refund for all tickets (domestic, international and foreign carriers). The Government’s approach is very balanced, as the credit shell time has also been extended to 31 March 2021. Passengers can use it for ticket booking and for not taking the credit shell, a full refund will be available with a nominal interest and it is indeed a welcome move. ”